Wednesday, June 04, 2008

The Wrong Stuff

From the Sacramento Bee:

Pressured by a faltering economy and often burdened by loans they took out during the housing boom, more Sacramento-area homeowners are looking to reverse mortgages for an escape route. But many are finding the road blocked by the falling values of their homes. "A lot of them aren't qualifying now. With the falling values they don't have as much equity," said Sylvia Williams, a Elk Grove loan specialist with San Rafael-based Sequoia Reverse Mortgage.
From Home Front:
[A] lawsuit [was] f[i]led in Sacramento County Superior Court by the Park River Oak Estates Homeowners Association in Sacramento against Chuck and Victoria Scott Yeager. The lawsuits alleges that the Yeagers owe the association $12,000 in overdue assessments and fees. Yeager was...the first pilot to break the sound barrier in 1947 at Edwards Air Force Base.

10 comments:

Diggin Deeper said...

It's hard for me to believe that people affected by reverse mortgages wouldn't be more the exception than the rule. The starting point is 62 years old... not really a wheeling/dealing age to get crazy with your original mortgage. Could be wrong but this one just doesn't sound right.

anon1137 said...

Great headline, Lander!

PeonInChief said...

Many of the nearly-retired may have taken out loans on the house to fund health care costs or their children's college educations. Reverse mortgages require that any loans on the property be paid off, and then allow for remaining equity to be drawn down.

I've always considered reverse mortgages a bit of a scam, as these mortgages have huge fees. Most people would be better off selling the house and purchasing a smaller house or renting. These mortgages depend on our elders emotional attachment to their houses.

Deflationary Jane said...

Taking refuge in my hotel this afternoon - hot and muggy with some minor tornado watches going on. Tomorrow we're back to big storms.

In the meantime - a friend sent me a link to Brokerspost. I posted a piece of it below. Note the area code of the guy asking for help:
'I had an LO do one loan under my CA CFL license almost 1 1/2 years ago and now the Bank is trying to recall the loan. It was ridiculous they even lent 100%, $400K loan to this 20 year old buyer with no credit score anyway. I have no idea what the underwriter was doing. Unbeleivable. Does anyone have any advice for me? I have an attorney already. The LO fraudulated the whole thing as bad as you can. Call Brad at 916-765-2708 or email brokerbrad@gmail.com'

KMOV - the local news had a piece on foreclosure bus tours in St. Charles (NW suburb). As many have said, no one is immune.

smf said...

What is it with this expectation of parents funding their children's college education?

As I told my wife, 'we will pay what we can'.

Up to our generation, most students were expected to pay for their college education.

What changed?

(Would this be one reason why a college education keeps getting more expensive?)

David said...

Anybody catch the report on the local PBS radio station about code enforcement problems due to the foreclosed houses? They went by houses in several parts of the County with an officer from code enforcement. The descriptions of the destroyed houses in South Sac with the huge piles of debris out front is pretty frightening.

wrong moves said...

The house I currently rent was put on the market 1 year after we moved in. The lord was asking 420K (laughable) and it never sold. Most of the lookers were WAY beyond retirement age, so much that the SO and I were asking ourselves "Why are old people looking to spend soooo much money on a house like this?"

My $.02

dvobell said...

From Jane's Brokerspost post:

"The LO fraudulated the whole thing as bad as you can."

"FRAUDULATED"?

*pausing to laugh, long and hard...

And so, a new word was born.

'But of course my loan was -- how shall I say this -- Highly Fraudulated.'

Patient Renter said...

"FRAUDULATED"?

You can't blame the guy for wanting to sound Presidential.

dvobell said...

PR, you're right. It does have a certain, um, Dignitude.